8-KOther Events

INTUIT INC. 8-K Report (Aug 24, 2001)

Filed August 24, 2001For Securities:INTU

Summary

Intuit Inc. reported its financial results for the fourth quarter and fiscal year ended July 31, 2001. For the full fiscal year 2001, revenue increased by 15% to $1.26 billion, driven by strong performance in Quicken Loans, payroll, and consumer tax businesses. However, the company reported a net loss of $82.8 million ($0.40 per share) for the year, a significant decline from the $305.7 million net income ($1.45 per share) in fiscal 2000. The net loss in fiscal 2001 was primarily due to significant non-operating charges totaling approximately $187.3 million. These charges included write-downs and losses on marketable securities and other investments ($98.1 million) and increased acquisition-related costs ($89.2 million), largely from the accelerated write-down of goodwill. The prior fiscal year benefited from substantial gains on investments. For the fourth quarter, revenue grew 18% to $191.2 million, but the company posted a net loss of $61.3 million ($0.29 per share), which is typical for the quarter due to seasonal tax revenue dips and ongoing product development expenses.

Key Highlights

  • 1Fiscal 2001 revenue grew 15% to $1.26 billion, indicating top-line growth.
  • 2Net loss for Fiscal 2001 was $82.8 million ($0.40 per share), a significant reversal from Fiscal 2000's net income of $305.7 million.
  • 3The annual net loss was impacted by $187.3 million in pre-tax charges, including investment write-downs and acquisition-related costs (goodwill amortization).
  • 4Fourth-quarter revenue increased 18% to $191.2 million, driven by Quicken Loans and payroll.
  • 5A net loss of $61.3 million ($0.29 per share) was reported for the fourth quarter, a typical seasonal occurrence for Intuit.
  • 6Fiscal 2000 results were significantly boosted by a $481.1 million pre-tax gain from marketable securities and other investments.
  • 7Balance sheet shows an increase in cash and cash equivalents and short-term investments, but a decrease in marketable securities and accounts receivable.

Frequently Asked Questions

The decrease in net income was primarily due to significant non-operating charges in fiscal 2001, totaling approximately $187.3 million. These included write-downs and losses on marketable securities and other investments, as well as higher acquisition-related costs, particularly the accelerated write-down of goodwill. In contrast, fiscal 2000 benefited from substantial gains on investments.

Revenue growth in fiscal 2001 was driven by strong performance in Intuit's Quicken Loans, payroll, and consumer tax businesses. The fourth quarter specifically saw very strong results from Quicken Loans and payroll.

Intuit typically reports a net loss in its fourth quarter (ending July 31) because revenue from its tax preparation businesses is minimal during this period, while operating expenses for product and service development continue at a relatively consistent level.

Acquisition-related costs, including the accelerated write-down of goodwill for prior acquisitions, significantly impacted fiscal 2001 results, contributing to the net loss. These costs were substantially higher in fiscal 2001 compared to fiscal 2000.